High-stakes domestic dispute over $172M in bitcoin moves forward in U.K. court
A U.K. High Court judge has allowed a lawsuit to proceed in a high-profile case that pits traditional property law against the realities of cryptocurrency custody — and centers on an allegation that a wife used home CCTV to pilfer her husband’s bitcoin.
What’s alleged
- U.K. resident Ping Fai Yuen says his estranged wife, Fun Yung Li, secretly viewed CCTV footage in their home to obtain the 24‑word recovery phrase for his Trezor cold wallet and, in August 2023, transferred 2,323 BTC without his permission, according to filings in the High Court of England and Wales.
- At the time of the alleged transfer the holdings were worth just under $60 million. With bitcoin prices now above roughly $74,000 per coin, those 2,323 BTC are currently valued at about $172 million.
- The wallet was protected by a PIN, but — as the court noted — anyone with the 24‑word seed phrase can recreate a hardware wallet and move its funds. The coins were allegedly moved through several transactions and now reside across 71 non‑exchange addresses. The funds have not moved since Dec. 21, 2023.
Related events and police action
- Yuen says he later installed audio recording devices after their daughter warned him Li was attempting to take the bitcoin. After discovering the transfer he confronted Li and assaulted her; he pleaded guilty in 2024 to assault occasioning actual bodily harm and two counts of common assault.
- Police searched Li’s home and seized several hardware wallets and recovery seeds, but authorities subsequently took no further action pending new evidence.
Legal dispute and significance
- Li sought to dismiss the case, arguing Yuen’s main claim — conversion, a common-law tort traditionally used for physical property — cannot apply to a digital asset like bitcoin. The judge initially agreed that conventional notions of conversion raise problems when applied to crypto, but nevertheless ruled the case may proceed on alternative legal grounds that could permit recovery if Yuen’s allegations are proven.
- The decision to let the suit continue highlights the wider challenge facing courts worldwide: adapting centuries-old property doctrines to intangible, blockchain‑based assets.
Next steps
- The judge has permitted the action to move toward trial. If the factual allegations are established and the court accepts appropriate legal theories for digital assets, the litigation could result in recovery of the disputed bitcoins.
Read more AI-generated news on: undefined/news
